Foreclosing an existing loan can be a wise decision when it is a well thought one. Planning your finances is a crucial step before you take the plunge. You can get in touch with your lender’s Relationship Manager to understand the nuances of the process as this information will help you in taking the right decisions.
Know about Charges: As per the new ruling by RBI lenders are not supposed to charge for foreclosure. If your lender abides by the rule it will help to save. The lender will let you know the outstanding amount which needs to be settled by a due date by way of cheque or an online transfer.
Interest Savings: With foreclosure you save on the overall interest payment. Check the dues paid on the loan. If you find that you have repaid most of the interest on the loan in the first half of the tenure you can then utilize the money for foreclosure to invest somewhere else. Besides, there are no prepayment penalty charges which are levied on foreclosure of floating rate loans.So, the loan against property foreclosure calculator gives it all for your proper EMI calculations.
Negotiations: One of the lesser known benefit of foreclosure is that it gives you a chance to negotiate the existing loan terms with your lender. The lender may suggest lowering of your interest rate, waive off payments or some other related terms so the loan becomes easy-to-manage.
The thing with foreclosure of loan against property is that it will free you of the financial responsibility much earlier than you had initially planned. Returning the loan back to the bank might put a temporary constrain on your expenses but in the long run it will give you the mental and financial freedom you wish for. Besides, leaving a positive mark on your credit score.
Additional Read: Should you Foreclose your Loan Against Property?
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
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